Keywords
economy
exchange rate
defense spending
labor market
public debt
imports
exports
How to Cite
Abstract
The perception of the nature of war significantly affects the economic and political strategies of the state. The article examines the views of theorists who allow us to consider war as a multifaceted process that is interconnected with political, economic and social aspects. War, according to their doctrine, goes beyond purely military operations, turning into a continuation of politics and the result of a conflict of interests that involves strategic planning, resource allocation and social structures. The purpose of the article is to analyze the impact of war on the Ukrainian economy. It is shown that during military conflicts, the country's economy undergoes significant shocks, in particular due to the destruction of infrastructure, decline in production, outflow of investments, inflation and shortage of resources. It is determined that due to the growth of defense spending, which has increased by 55.95% over the past five years, funding for the social sphere, healthcare and education has decreased. Changes in the labor market have been identified: part of the able-bodied population is being mobilized, and industry is focusing on military needs. Studies have shown that the unemployment rate in 2021–2025 increased by 7.4%, which led to a labor shortage in the civilian sector, a decrease in production, and higher prices. The impact of the war on international trade is analyzed: in 2021–2025, exports decreased by 95.3% and imports by 92.4%. Changes in the financial system have been identified: devaluation of the national currency, decreased confidence in banks, and increased public debt. The analysis shows that the national currency has appreciated by 14.4 UAH/USD and 11.05 UAH/EUR, and the public debt has increased by UAH 4.396 trillion. It was found that, despite the negative consequences, military conflicts can stimulate the development of certain industries, such as the defense industry, IT, energy, and the production of strategically important goods. The state can take economic measures to support businesses, stabilize the financial system, and attract international assistance for further economic recovery.
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